But the state of south carolina has no money

“But the State of South Carolina Has No Money?” With budget cut after budget cut… and the state and country in the midst of a recession, these words are often uttered. But South Carolina has real needs… and citizens continue to expect basic services such as education, safety, and healthcare. South Carolina’s state government relies mostly on income taxes and sales taxes to fund most of its state budget. What Do We Tax in South Carolina? In the State of South Carolina, there is a state sales tax of six percent. This rate represents one of the highest sales tax rates in America. The state is able to raise approximately $2.5 billion annually through this six percent sales tax. Interesting to note, however, is that South Carolina has over 80 exemptions to this 6% sales tax. Over 80 instances in which certain items are exempted from this statewide sales tax. In fact, South Carolina exempts more (over $2.7 billion) annually from sales taxes than it collects ($2.5 billion). This naturally begs the question; in South Carolina… what do we actually tax? {Cost of exemption to state in parenthesis.} SC has a Vehicle Tax Exemption of a $300 cap on sales tax on numerous vehicles. We collect 90 cents (6%) sales tax on a $15 model airplane, but we cap the tax on a million dollar leer jet at $300 - a $59,700 tax exemption. {$1.2 million} We collect $300 on the sale of a used 2006 - $5,000 Hyundai. We collect $300 on a $385,000 - 2009 Lamborghini Roadster – a $22,800 exemption. {$152 million} We collect $300 on a $36,000 BMW. N.C. collects $1,080 & Georgia collects $2,520 on the same vehicle. We collect $300 on the sale of a 2008 - $5,000 Suzuki Motorcycle. We collect $300 on a $35,499 - 2009 Harley Davidson CVO – a $1,830 exemption. {$2.3 million} We collect $300 on the sale of a $5,000 - 15 foot Sylvan Smokercraft Fishing Boat. We collect $300 on a used 1982 – 126 foot $6.5 million Feadship Yacht – a $389,700 exemption. {$5 million} We collect $300 on the sale of a 1997 - $5,000 Delta Straight Load Horse Trailer. We collect $300 on a 2009 - $158,000 Exiss Trailers Event Custom Cowboy 18' Gooseneck Horse Trailer – a $9,180 exemption. {$825,527} We collect $300 on the sale of a 1989 - $5,000 Chieftain Winnebago. We collect $300 on a 2007 - $130,000 Coach House Platinum Recreational Vehicle – a $7,500 exemption. {$7.9 million} We collect $300 on the sale of a 2004 - $5,000 Cat/Noble TM50 Piggyback Forklift (self-propelled light construction). We collect $300 on 2009 - $31,000 Nissan New Container MAST 2.5 Forklift – a $1,560 exemption. {$2.9 million} We collect $300 on the sale of a 1973 - $5,000 Singlewide (2 BR/1Ba/480 sq ft) Manufactured Home. We collect $300 on a 2001 - $139,500 Doublewide Commander Manufactured Home (4 BR/2Ba/2432 sq ft) which meets certain energy efficiency standards – a $8,070 exemption. {$26.6 million} We collect $300 on the sale of a $5,000 Tellers-Sommerhoff 16 ft Opus Pipe Organ to a Church. We collect $300 on a $125,000 - 1874 Hook & Hastings 252 ft Pipe Organ sold to a church - $7,200 exemption. {$87,000} We collect nothing in taxes on the sale of mink animals sold to be raised to produce fur. We collect $300 on the sale of a $5,000 mink coat. {$59 million} We collect 6 cents on a Big Mac on the dollar menu at McDonalds. We collect nothing on the sale of sweet feed for Black Angus cattle. {$16.3 million} We collect $3.84 on the sale of a $64 – 42 pound bag of Scott’s Summerguard home lawn/garden fertilizer. We collect nothing on the sale of $200 Texas Longhorn registered bull semen. {farm products total: $16 million} We collect 18 cents on a $3 spool of string used to fly a kite. We collect nothing on the sale of a spool of twine used to deliver newspapers. {total containers exemption: $600,000} We collect 6 cents on a $1 pack of college rule paper. We collect nothing on the sale of newsprint paper sold to newspapers. {$5 million} We collect 42 cents on the sale of $7 College Football Preview Magazines. We collect nothing on the sale of The State newspaper. {$7 million} We collect 33 cents on the sale of a $5.50 Progressive Farmer magazine. We collect nothing for the sale of The Market Bulletin. {$10,800} We collect $1.20 on the sale of a $20 bag of Kingsford Matchlite Charcoal. We collect nothing on the sale of coal to electric & transportation companies. {$103 million} We collect $4.14 on the sale of a Panasonic KXTS 2-line corded phone at Wal-Mart. We collect nothing on the sale of “charges for colored telephones and retractable cords” obtained through a telephone company. {total customer charges exemptions: $22.8 million} We collect $2.10 on the sale of a $35 GE answering machine. We collect nothing on telephone company run voicemail messaging. {$46 million} Banks charge customers $2 for use of an automated teller machine – not affiliated with the person’s bank. The state collects nothing for the transaction. {$5 million} We collect 30 cents on the sale a $5 pack (24) of bottled water. We collect nothing on water sold by public utilities (if rates are per PSC). {$27 million} We collect 14 cents tax on the dry cleaning of shirt. We collect nothing on the dry cleaning for ships involved in intercoastal trade. {total vessel bunkering exemptions: $1.5 million} We collect 12 cents per pound of dry ice – used to preserve property during shipment. We collect nothing on the sale of the shipping containers. We collect 15 cents on the sale of a package of Reynolds aluminum foil. We collect nothing on aluminum foil purchased and used in shipping. We collect 30 cents on the sale of Hallmark wrapping paper. We collect nothing on wrapping paper sold and used in shipping. {total product delivery exemptions: $25 million} We collect 30 cents per gallon of gas sold at the pump for use in a personal car or boat. We collect nothing for the sale of any type of motor fuel used by commercial fishing vessels or farm tractors. {$500 million} We collect $144 on the sale of the $2,400 Giles Dairy Deluxe Milking Machine. We collect nothing on the pasteurizing machines utilized once the cow is milked. We collect taxes on the range feeders/waterers and mousetraps sold in South Carolina. We collect nothing on automatic chain feeders, auger & pan feeders and automatic waterers sold to the same farms. We collect taxes on egg baskets, egg stackers, and nesting equipment sold to farmers. We collect no taxes on egg washing machinery, egg grading machinery, and egg candling machinery sold to the same farms. We collect taxes on gloves used by farmers in cleaning out chicken cage houses. We collect nothing on the sale of automatic clean-out systems for cage houses. We collect 7 cents a pack (lowest in nation) in cigarette taxes. We collect nothing in the sale of tobacco curers and/or transporters. We collect $300 on the sale of a $5,000 S & H Bumperpull Stock Trailer. We collect nothing on the sale of a stock trailer used for hauling farm crops. {Total farm machinery tax exemption cost to state: $7.3 million} We collect taxes on manufactured products. We exempt from taxes machines used in producing manufactured products. {$63 million} Example: Television Stations are considered manufacturers. We collect taxes on the sale of electricity to TV stations when the electricity is used for such purposes as providing lighting and air conditioning in offices and elevators. We collect no taxes for electricity sold to TV stations to produce light & air conditioning for the production of TV shows. We collect taxes on the sale of sound proofing materials, radio/TV towers, and wiring sold to TV stations. We collect no taxes on the sale of studio technical equipment and machinery/antenna sold to TV stations. We collect 7 cents per pack of cigarettes and 12 cents on the sale of boiled peanuts at a football game. We collect nothing on the fuel used to cure agricultural products such as tobacco and peanuts. {$750,000} We collect taxes from manufacturers on the electricity they use for administrative purposes (i.e. offices, parking lots, first aid rooms, elevators, & water coolers). We collect no taxes from manufacturers used in the production of tangible property for sale. {$87.5 million} We collect $18 in taxes for the sale of a Classic Lionel Train Set. We collect no taxes on the sale of a $300,000 EMD 1750 HP GP-9 Locomotive. {$352,710} We collect $35 on the sale of a 9-ft G-3 Jon Boat. We collect nothing on a $15 million – New Hopper 560-ft Barge. {$169,546} We collect 60 cents on the sale of a G.I. Joe Dukes Toy Missile Launcher. We collect nothing on the sale of materials used to produce missiles by the US Military. {Exemption amount: Classified} We collect sales taxes on farm products sold by a farmer who operates a processing plant. We collect taxes on farm products sold by the distant cousin of a farmer. We collect no taxes on farm products sold by a farmer (or immediate family) – when they do not own a processing plant. {$412,400} We collect 30 cents in taxes on the sale of Resolve carpet cleaner. We collect no taxes on the sale of equipment and supplies to carpet cleaners. We collect taxes on the supplies and equipment bought by coin-operated Laundromats. We collect no taxes on the sales of supplies and equipment bought by laundries and dry-cleaners. {total cleaner exemptions: $3.3 million} We collect revenue on the licensing of vehicles sold to residents of South Carolina. We collect no revenue on such licensing if said individual is located in S.C. by reason of the United States Armed Forces. {$2.2 million} We collect taxes on office equipment/supplies and soundproofing/wiring equipment sold to TV and Radio Stations. We collect no taxes technical equipment (i.e. stage furniture, props, recording devices, projectors, video equipment, and typewriters). {9.2 Million} We collect taxes on the broadcasting tower for an FM Radio Station. We collect no taxes on the broadcasting tower for an AM Station. We collect $12 in taxes on the sale of a Collie at Pets Unlimited. We collect nothing on a monkey sold to the local zoo. {$4,290} We collect 60 cents in taxes on the sale of Benadryl Allergy medicine. We collect nothing on the sale of medicine and prosthetic devices sold by prescription, pharmaceuticals used in treatment of cancer and other related diseases and medicines used to prevent respiratory syncytial virus. {$585 million} We collect taxes on a Dinner Cruise in Charleston. We collect no taxes on a vacation time-share near the Battery in downtown Charleston. {$5.3 million} We collect taxes on the sale of gasoline to farmers to use in their Chevy Pick-up truck. We collect no taxes on the sale of gas used in the production of poultry, livestock, swine, and milk. {$1.3 million} We collect taxes on electricity sold to and used in nursing homes, college dorms, and summer camps. We collect no taxes on electricity sold for residential purposes. {$188 million} We collect taxes on one-half of the proceeds from the sale of a modular home. We collect no taxes on the other half? {$1.9 million} We collect 18 cents on a Blockbuster video/DVD movie rental. We collect nothing on the rental of a movie by a theater. {$2.8 million} We collect $60 in taxes on the sale of new asphalt for your driveway. We collect nothing in taxes for the sale of asphalt products transported and consumed out of South Carolina. {$614,000} We collect $3.60 in taxes for the sale of Creative Lab stereo headphones. We collect no taxes on hearing aids. {$2.1 million} We collect sales taxes on concession items sold at the State Fair. We collect no taxes on concession sales at the annual Ridgeway Pig on the Ridge Festival. {$475,000} We collect taxes on the sale of a new chassis for the rebuilding of a C-10 Chevy. We collect no taxes on the chassis sold to international shipping lines. {$550,000} We collect taxes on the sales made by for-profit organizations. We collect no sales taxes on the sales made by non-profit organizations. {$6.7 million} We collect taxes on the sale of depreciable assets – when sold in-part by the owner. We collect no taxes on the sale of depreciable assets when the entire business is sold by the owner. {$125,000} We collect taxes on the sale of DVD equipment used by citizens to watch movies. We collect no taxes on the sales of all supplies sold to motion picture companies – used in the production of a movie. {$42,179} We collect taxes on the sale of building materials, supplies, and fixtures used in the construction/repair of dad’s workshop in the garage. And we collect taxes on the fencing of pastures. We collect no taxes on the sale of building materials, supplies, and fixtures used in the construction/repair of commercial housing of poultry/livestock. {$ 63,000} We collect taxes on the sale of tombstones and grave markers of deceased loved ones. We collect no taxes on the sale of war memorials/monuments. {$50,000} We collect 78 cents on the sale of Hefty Kitchen trash bags. We collect nothing on the sale of solid waste disposal bags. {$39,000} We collect sales tax on the sale of propane for a gas grill. We collect no sales tax on propane for the use in recycling property. {total recycling property exemption: $2.8 million} We tax the gloves (for handling products) sold to manufacturing facilities. We collect no taxes on the material handling systems sold to manufacturers. {$1.4 million} We collect $12 in taxes on the sale of a carburetor for the engine of a Chevrolet Nova. We collect no taxes on the sale of parts/supplies used in repairing commercial air carriers. {$562,000} Individuals pay $1,000 for a bumper-to-bumper extended car warranty for their vehicle. The state of South Carolina collects no tax on this sale. {$1.2 million} We collect $2.22 in sales taxes on a King Gee’s work-man’s shirt. We collect no taxes on clothing required for working in a Class 100 Federal certified clean environment. {$40,000} We collect $3.18 on the sale of the Matrix: Ultimate Collection DVD movie. We collect no taxes on the sale of audiovisual masters used by movie-making companies. {$60,000} We collect $300 on the sale of a used JCB Jonsred super z crane used by the local contractor in your town. We collect no taxes on machines used in research and development centers. {$2.6 million} We collect sales taxes on clothing and school supplies 363 days per year. We collect no taxes on clothing and school supplies on the 1st Friday & Saturday in August. {$2.6 million} We collect taxes on envelopes and mailing supplies. We collect no taxes on cooperative direct mail by nonprofits. {$800,000} We collect taxes on the sales of Carolina and Clemson football tickets. We collect no taxes on lottery tickets. {$47.6 million} We collect taxes on 30% of the gross proceeds of the rental of a portable toilet. We collect no taxes on the other 70% of the toilet. {$332,976} We collect taxes on wicker items sold at Lowes and Home Depot. We collect no taxes on sweet grass baskets made in South Carolina. {$30,000} We collect taxes on construction materials used to repair your bathroom. We collect nothing on the sale of construction materials used in the construction of a single manufacturing facility (worth at least $100 million). {$14 million} We collect taxes on items sold in a neighborhood yard sale. We collect no taxes on items sold in a sheriff’s property sale. {$331,872} We collect $90 on the sale of a $1,500 Ladies Concord Delerium 18K white gold watch. We collect no taxes on the sale of gold, silver, or platinum bullion. {$82,860} We collect taxes on a family’s outing to Chuck-E-Cheese. We collect no taxes on an amusement park ride (or anything connected building/repairing rides). {$3.9 million} We collect 72 cents in taxes on the 12 oz. New York Strip Dinner at Applebees. We collect no taxes on the sale of unprepared food. {$354 million} * Source: South Carolina Board of Economic Advisors “Sales & Use Tax Exemptions: Fiscal Year 2008-09” (http://www.bcb.sc.gov/BCB/bea/exemptions.pdf)

But the state of south carolina has no money

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But the state of south carolina has no money